The Renewable Energy Sources and the Renewable Energies

The Renewable Energy Sources and the Renewable Energies Heat Act

Data and facts for biomass

Federal Ministry of Food, Agriculture and Consumer Protection

Dear readers,

A climate-saving and protect-

ing, economically efficient,

resources-saving and socially

acceptable energy supply is

the key challenge of the 21st

century. The Federal Govern-

ment has laid the foundation for a trendsetting energy policy in

2007 with the Integrated Energy and Climate Programme (IEKP).

The climate protection objectives defined in this programme

form the basis for our work. In particular the renewable energies

are of central importance. The amendment of the Renewable

Energy Sources Act (EEG) and the Renewable Energies Heat Act

(EEWärmeG) accommodate this fact.

Germany has assumed a cutting-edge position in the market for

power generation from renewable energies with its successful

market introduction policy. Around 70 percent of the renewable

energies are produced from regenerative biomass. The improve-

ment of the biomass energy efficiency also offers a high sustain-

ability potential. Bioenergy can support the regional added

value and thus create employment opportunities. This provides

new chances for rural areas. 280,000 new jobs have been created

in the overall renewable energy industry to date.

The amended EEG strives to increase the share of renewable

energies in the overall power generation by at least 30 percent

by 2020. The traditional biomass potential is limited. The pro-

Foreword

motion therefore is mainly focussed on the energetic use of agri-

cultural by-products, slurry, wood from short rotation forestry

and landscaping material. The additional extension of cogener-

ation helps saving coal and oil and enables higher resources effi-

ciency. Other key objectives include the technical development of

biogas treatment and supply into the natural gas network.

The heat sector, in particular, offers great improvement potential

with regards to the use of renewable energies. To date, the share

of renewable energies in the overall heat consumption in Ger-

many amounts to 7.7 percent. The objective is to increase this

share to 14 percent by 2020. The Renewable Energies Heat Act

serves to further increase the use of heat from renewable energy

sources and other climate-saving measures for new buildings.

The new legal regulations are important development steps

towards sustainability in the context of the energy and climate

policy. Plant operators, energy companies, our society and our

environment will benefit from energy generated from clean and

future-proof resources.

This brochure provides an informative and comprehensive

guidance on the Renewable Energy Sources and the Renewable

Energies Heat Act, the application of which will take us further

into the future.

Ilse Aigner

Federal Minister of Food, Agriculture and

Consumer Protection

Contents

Act on Reforming the Renewable Energies Law on Power

Generation and Related Regulations (EEG) 6

EEG – an instrument for realising energy-political targets 6

New framework conditions for power from 8

renewable energies

Compensation regulations for power from 11

renewable energies

Compensation for power generated from biomass 13

Compliance with sustainability criteria 33

EEG Clearing Body 35

Act on Granting Priority to Renewable Energies in

the Heat Sector (EEWärmeG) 36

EEWärmeG – an instrument for realising 36

energy-political targets in the heat sector

Introduction of a usage obligation for renewable energies 37

Promotion of renewable energies for heat generation 40

Other programmes for promoting renewable energies 43

Compensation table – complete overview 46

Act on Reforming the Renewable Energies Law on Power Generation and Related Regulations (EEG)

The Renewable Energy Sources Act (EEG) serves to promote power

generation from renewable resources. With the adoption of the

Act on the Supply of Power from Renewable Energies to the

Public Network in 1991, the supply conditions and the compen-

sation regulations were defined for the first time, thus creating

incentives for the production of regenerative power. This act was

replaced by the Act on Granting Priority to Renewable Energies

on April 1st 2000. The amendments implemented since then were

required in order to consider the altered framework conditions

and new objectives, in particular for biomass.

EEG – an instrument for realising energy-political targets

In addition to climate protection, the sustainable energy supply,

energy safety and the reduction of macroeconomic costs are of

special importance for the Federal Government. Renewable en-

ergies contribute to the achievement of these objectives and to

the preservation of fossil energy sources. The EEG has proven to

be a suitable instrument for promoting renewable energies in the

electricity sector and for the development of technologies for

generating power from such sources.

The share of renewable energies in the gross power consumption

has nearly tripled to 14.8 % in the recent decade. In addition to

wind (44 %) and water power (23 %), around 29 % of the power

from renewable energies was produced from biomass in 2008.

6

Development of the power generation from

renewable energies (RE) and biomass in Germany

1998 2000 2002 2004 2006 2008

Power generation from RE

GWh

26,913 36,679 45,760 57,529 72,240 91,352

RE share of gross power consumption

%

4.8 6.3 7.8 9.5 11.7 14.8

Biomass share

GWh

1,642 2,279 4,017 8,347 15,593 21,084

Biomass power share in power generation from RE

%

6.1 6.2 8.8 14.5 21.6 23.1

Source: BMU based on AGEE-Stat as of April 2009

With the commencement of the 2nd EEG amendment, the power

generation from renewable energies will be further extended.

§ 1, clause 2, EEG

“… Purpose …, … of this act …, to extend the share of renewable

energies in the power supply to at least 30 percent by 2020 and to

continuously increase this share subsequently.”

A key aspect of this amendment is to increasingly promote the

power generation from agricultural residuals (slurry, litter), land-

scaping material and residual forest wood as well as fast growing

wood from short rotation forestry.

7

New framework conditions for power from renewable energies

Power supply management replaces the previous power generation management.

§ 11, clause 1, EEG

“Network operators are … in exceptional cases, entitled to control

facilities connected to their network with an output exceeding

100 kilowatt for generating power from renewable energies, cogen-

eration or mine gas ... .”

This regulation is aimed for the utmost power supply from renew-

able energies, mine gas or cogeneration to the network.

In exceptional cases, the network operator may cut off

plants from the network:

ó in case of a risk of a network capacity overload in this

network area,

ó to ensure the collection of an utmost power quantity from

renewable energies and cogeneration, and

ó subsequently to a performed data acquisition of the actual

supply to the respective network region.

8

The network connection requires the plants to be equipped with

a technical or functional facility for a remote reduction of the

supply level and acquisition of the respective actual supply data

(by the plant operator) that may be accessed by the network

operator.

Operators of plants that have been commissioned prior to the 1st

of January 2009 must meet these operational and technical re-

quirements as from the 1st of January 2011.

Plant operators that are particularly affected by the supply management are entitled to a compensation regulation.


“The net operator, whose network has caused the regulation

requirement … is obligated to indemnify the plant operators …”

9

ó The indemnity amount can be agreed individually between

the network operator and the plant operator.

ó In absence of such an agreement, the net operator agrees to

pay the lost compensation and heat proceeds less saved ex-

penses. “Lost compensations” means the compensation rates

according to the EEG or the justified price that the plant oper-

ator would have received in a case of own marketing. The lost

heat proceeds are to be determined based on the heat supply

agreements, including contract damages, if applicable.

The plant operator may market the power to third parties.


“Plant operators are entitled to sell the power generated in the

plant to third parties in each calendar month …”

ó The overall produced power can be marketed to third parties.

ó The produced power can also be marketed partially to third

parties, while claiming the EEG compensation for the re-

maining power.

The plant operator must notify changes with regards to his power

marketing prior to the beginning of the respective previous

calendar month to the network operator.

In case of a partial direct power marketing, the plant operator

must determine a fixed percentage of the current power gener-

ation which is intended for direct marketing and must be able

to prove his adherence to this percentage at any time.

10

Compensation regulations for power from renewable energies

Compensation for power from multiple plants

The compensation regulations for power from multiple plants

have been stipulated in order to avoid a plant splitting (breaking

up plants into smaller units in order to receive higher compen-

sation rates for smaller performance areas).


“Multiple plants are only regarded as a single plant independently

from the ownership conditions and solely for the purpose of de-

termining the compensation for the most recent commissioned ge-

nerator, if:

ó they are located on the same property or otherwise in

direct vicinity,

ó they generate power from similar renewable energies,

ó the power generated by these plants is compensated according

to the regulations of this act, depending on the performance of

such plant, and

ó the plants have been commissioned within twelve consecutive

calendar months …”

The regulation also applies retroactively for existing plants (for re-

viewing the compliance with the constitution, several complaints

are pending at the Federal Constitutional Court).

11

Compensation commencement and term

The commencement and term of the compensation correspond

to the currently applicable standard (EEG 2004).

§ 21 EEG

“(1) The compensation has to be paid as from the date, on which

the generator produces the first power exclusively from renewable

energies or mine gas and has supplied such power to the network

according to § 8 clause 1 or clause 2 for the first time or ...

(2) The compensation is to be paid respectively for a term of 20

calendar years, additionally the year of commissioning. … The term

shall commence in the commissioning date of the generator – in-

dependently of whether the latter has been commissioned with

renewable energies, mine gas or other energy sources.

(3) The replacement of the generator or other technical or structur-

al parts does not result in a restart or extension of the term accord-

ing to clause 2, sentence 1, unless specified otherwise in the follow-

ing provisions.”

12

Compensation for power generated from biomass

1. Basic compensation

The compensation for power generated from biomass consists of

a basic compensation graded according to performance areas.

Basic compensation thresholds according to § 27, clause 1, EEG

Performance area 2009

up to and including 150 kWel

11.67 Cents/kWh

> 150 kWel up to and including 500 kW

el9.18 Cents/kWh

> 500 kWel up to and including 5 MW

el8.25 Cents/kWh

> 5 MWel up to and including 20 MW

el1) 7.79 Cents/kWh

1) For power generated from plants exceeding 5 MWel, the EEG compensation can

only be claimed, if the power is generated from cogeneration.

The basic compensation can be increased as the case may be, by:

ó the bonus for observing the corresponding formaldehyde

limit values,

ó the bonus for power generation with innovative technologies

(Technology bonus),

ó the bonus for the use of renewable raw materials or slurry

(NawaRo bonus), and

ó the bonus for the power production in cogeneration

(KWK-bonus).

As a novelty, the EEG compensation claim also applies for power

generated from plants with an output exceeding 20 MWel up to

and including the performance area of 20 MWel (complete over-

view on page 46 et seq.).

13

Degression


“… the compensations and bonuses for power generated from bio-

mass are decreased by 1 percent per year…”

The compensation level and the bonuses for power generated

from newly commissioned biomass plants are reduced annually

as from the 1st of January 2010.

Compensation for power generated from biomass for

the coming years

Performance

share

Basic compensation in Cent/kWh

2009 2010 2011 2012 2013 2014

up to and includ-

ing 150 kWel

11.67 11.55 11.44 11.32 11.21 11.10

> 150 kWel

to 500 kWel

9.18 9.09 9.00 8.91 8.82 8.73

> 500 kWel

to 5 MWel

8.25 8.17 8.09 8.00 7.92 7.85

> 5 MWel

to 20 MWel

7.79 7.71 7.63 7.56 7.48 7.41

Note: For calculating the compensation rates, the values are rounded to thesecond digit of the fractional part. The degression calculation for the next year however is based on the unrounded value for the previous year.

14

Basic compensation calculation

The basic compensation calculation for the supplied power is per-

formed according to the compensation levels. The performance

that is relevant for the compensation does not depend on the

electrical active power of the plant in this context, but rather on

the equivalent performance, i.e. the ratio between the supplied

annual power quantity (kWh) and the clock hours of a calendar

year (h).

Calculation example of the basic compensation of a bioenergy

plant

Year of commissioning 2009

Installed electrical performance 380 kW

Combined heat and power plant

(CHP) operating hours

7,500 hours per year

Power production per year 2,850,000 kWh

Compens-

ation levels

Output

[kWel]

Clock

hours/

year

Basic

compensa-

tion [Cent/

kWh]

Proceeds

[Euro]

up to 150 kWel 150 x 8,760 x 11.67 = 153,343.80

> 150 kWel

to 500 kWel

175 x 8,760 x 9.18 = 140 ,729.40

> 500 kWel

to 5 MWel

0 x 8,760 x 8.25 = 0

> 5 MWel to

20 MWel

0 x 8,760 x 7.79 = 0

325 294 ,073.20

Equivalent performance = 2,850,000 kWh = 325 kWeq 8,760 h

15

The EEG exclusivity principle is eased


“The compensation can be claimed for power ..., from plants that

also use other biomass in addition to the biomass according to the

… Biomass Ordinance ...”

ó Other biomass includes materials that are not subject to the

regulation concerning the power generation from biomass

(Biomass Ordinance) but rather biomass according to the

guideline 2001/77/EG (e.g. sewage studge).

Guideline 2001/77/EG, clause 2b:

“Biomass: the biodegradable portion of agricultural products, waste

and residuals (including vegetable and animal materials), products,

waste and residuals from forestry and related industries as well as

the biodegradable portion of industrial and household waste.”

The EEG compensation can be claimed to the power share ge-

nerated from biomass according to the Biomass Ordinance only.

The charge material book must include information and evidence

with regards to type, quantity, unit, origin and calorific value per

unit of the used materials. This information must enable the

evidence of the used biomass as well as the calculation of the EEG

power share.

This ease of the exclusivity principle does not extend on the

charge materials for biogas production. Biogas itself is an

EEG-accepted biomass according to the Biomass Ordinance.

16

2. Bonus for the observance of the corresponding formaldehyde limit values


“The compensation for power generated from plants that are sub-

ject to a permission according to the Federal Immission Control

Act and use gas (biogas) generated through anaerobic digestion is

increased by 1 Cent per kWh, if the formaldehyde limit values im-

posed by the emission minimisation instructions according to the

Technical Instructions on Air Quality are adhered to and this ad-

herence is evidenced through certification issued by the competent

authority.”

The Emission-Minimisation bonus is granted for power gene-

rated from biogas plants with an performance of up to and includ-

ing 500 kWel. The bonus can also be claimed for power from old

plants (commissioning prior to the 1st of January 2009), however

not for power from plants using biogas tapped from the gas net-

work. A formaldehyde limit value in the exhaust gas of 40 mg/m3

must be observed.

17

3. Bonus for the power production with innovative technologies – “Technology bonus”

Annex 1 (to § 27, clause 4, no. 1) EEG

“The technology bonus … can be claimed for power generated in

plants with an output of up to and including 5 megawatt, using an

… innovative procedure.”

In addition to innovative plant technology, innovative pro-

cedures according to the EEG also include biogas upgrading.

Innovative plant technology according to the EEG:

ó Thermochemical gasification: A process, in which e.g. bio-

mass is transitioned into the gaseous state in a reactor by feed-

ing heat, pressure and gasification agent – e.g. oxygen. The

gas treatment (purification) enables a power generation via

gas motors and gas turbines.

ó Fuel cell: The fuel cell directly converts the chemical energy

of the treated biogas into power. The functional principle is

comparable to the reversal of the water electrolysis. In a fuel

cell however, hydrogen (H2) and oxygen (O

2) combine to form

water (H2O), producing electrical energy and heat.

ó Gas turbine: Highly densified air is burned under fuel gas in-

feed in a combustion chamber. The heated gas is conveyed to

the turbine, driving a downstream generator.

18

ó Organic Rankine Cycle (ORC): This process uses organic oil

(thermal oil) that evaporates at lower temperatures and

pressures as compared to water. The steam enters a slowly

running turbine that generates power via a generator.

ó Stirling engine: In this case, a piston is moved through the

expansion of an enclosed gas by an external energy and/or

heat source rather than by the expansion of combustion gases

as in combustion engines.

Other innovative technologies:

ó Steam motors,

ó Multicomponent mixture plants, in particular Kalina-Cycle

plants,

ó New: Technologies for the exclusive thermochemical con-

version of straw and other crop stalks biomass, or

ó New: Plants for the exclusive fermentation of biowaste directly

related to the creation of a postmaturation of solid ferment-

ation residuals including a use of the postmatured ferment-

ation residuals.

Gas treatment

In addition to the common use for power and heat production,

biogas can also serve as a substitute for natural gas. This requires

a complex treatment of the biogas in order to supply the latter

as “biomethane” (biogas with natural gas quality) into the natural

gas network. This way, the upgraded biogas can be transported

over any distance through the existing gas network infrastructure

and e.g. used for power generation in combined heat and power

plants with a demand for the produced heat.

19

The technology bonus applies to power generated from upgraded

biogas, if the biogas treatment for the supply to the natural gas

network meets the following requirements:

ó maximum methane emission into the atmosphere during

treatment of 0.5 percent,

ó maximum power consumption for the treatment of 0.5 kWh

per standard cubic metre of crude gas,

ó maximum capacity of the gas treatment plant of 700 standard

cubic metres (Nm3) of treated crude gas per hour, and

ó delivery of the process heat for the biogas treatment and pro-

duction without the use of additional fossil fuels.

Amount of the potential “technology bonuses”

2009

Innovative technologies 2 Cents/kWh

Biogas upgrading and supply

up to a maximum capacity of the gas

upgrading plant of 350 Nm3

treated crude gas per hour

2 Cents/kWh

up to a maximum capacity of the gas

upgrading plant of 700 Nm3

treated crude gas per hour

1 Cent/kWh

20

4. Bonus for power generated from renewable raw materials – “NawaRo bonus”

Around 60 percent of the biogas plants currently use renewable

raw materials (EEG experience report 2007).

Annex 2, item I, no. 1a (to § 27, clause 4, no. 2) EEG

“The bonus can be claimed … if … the power is generated exclusive-

ly from renewable raw materials or – in case of an anaerobic diges-

tion of the renewable raw materials or slurry (biogas) - in combina-

tion with merely vegetable by-products.”

Renewable raw materials: Plants and plant elements generated

in agricultural, forestry or gardening operations or during land-

scaping that have not been subjected to any other treatment or

modification than for harvesting, preservation or use.

Slurry: All materials that are defined as slurry according to the regulation (EG) no. 1774/2002 of the European Parliament (EP) and the European Council as of October 3rd 2002 with hygienic regulations for animal by-products not intended for human consumption, as amended by the regulation (EG) 2007/2006 of the

ó European Commission as of December 22nd 2006 (ABl. EG Nr. L 379 S. 98).

21

The positive list recently included in the EEG (annex 2, item III)

substantiates the term “renewable raw materials” – referring in

particular to:

ó Periphyton of grass and pasture lands as whole plants in the

form of greenery, dry material and silage,

ó Field forage plants including crop harvested as whole plants,

oilseeds and legumes as greenery, dry material and silage,

ó Untreated vegetables, medical and spice plants, cut flowers,

ó Grains, seeds, corn-cob mix, corms, beets (including sugar

beets and mass beets), fruit, vegetables, haulm, turnip-top,

straw as greenery, dry material and silage,

ó Rapeseed and sunflower oil, respectively refined and unrefined,

ó Palm and soy bean oil, refined and unrefined (new: only, if

certain sustainability criteria are met 1) 2)),

1) see also page 332) In the period between the 1st of January 2009 and the effective date of the sustainability regulations, but in no case later than until the 31st of December 2009, this does not apply for plants that have been commissioned prior to the 5th of December 2007.

22

ó Wood residuals resulting from thinning and trunk wood

harvesting in forestry operations as well as bark, and wood

from short rotation plantations,

ó Plant or plant elements incurred during landscaping activities,

ó Dung and urine, including the litter of farm animals and horses

as well as forage residuals occurring in an agricultural operation.

As a novelty, the substrates mentioned above may be ferment-

ed together with a selection of merely vegetable by-products

without a denial of the NawaRo bonus.

Accordingly, the “NawaRo bonus” is only granted proportionally

to the power generated from renewable raw materials. The

percentage of the power entitled to the NawaRo bonus must be

evidenced by an environment expert.

23

Positive list for merely vegetable by-products

Merely vegetable by-products Standard biogas yield

(kWhel per ton of fresh

mass)

Spent grains (fresh or squeezed) 231

Vegetable grooming products 100

Cereals (strip waste) 960

Brewer grains (wheat)

from alcohol production

68

Rejects:

vegetable,

potatoes,

medical and spice plants,

cut flowers

150

350

220

210

Cereal dust 652

Glycerine from vegetable oil

processing

1,346

Potatoes (mashed,

medium starch contents)

251

Potato vegetable water from

starch production

43

Potato process water from

starch production

11

Potato pulp from

starch production

229

Potato peels 251

Potato distiller’s wash from

alcohol production

63

Molasses from beet sugar

production

629

Pomace (fresh, untreated) 187

Rapeseed extraction shred 1,038

24

Merely vegetable by-products Standard biogas yield

(kWhel per ton of fresh

mass)

Colza cake (residual oil contents

of around 15 percent)

1,160

Sugar beet dried cake from

sugar production

242

Sugar beet chips 242

NawaRo bonus for power production from solid biomass

“NawaRo bonus” amount – solid biomass

Performance share EEG 2009

up to and including 150 kWel 6 Cents/kWh

> 150 kWel up to and including

500 kWel

6 Cents/kWh

> 500 kWel

up to and including

5 MWel

4 Cents/kWh1)

2.5 Cents/kWh

1) for power from the combustion of wood from short rotation forestry and land-scaping material

25

NawaRo bonus for power production from liquid biomass

As a novelty, the NawaRo bonus for power generated by new

plants in which vegetable oils are converted into power is only

granted up to and including an performance share of 150 kW.

“NawaRo bonus” amount – liquid biomass

Performance share Existing plants

2009 (commis-

sioning until

December 31st

2008) 1) 2)

New plants 2009

(commissioning

after December

31st 2008) 1)

up to and including

150 kWel

6 Cents/kWh 6 Cents/kWh

> 150 kWel

up to and

including 500 kWel

6 Cents/kWh 0 Cent/kWh

> 500 kWel

up to and

including 5 MWel

4 Cents/kWh 0 Cent/kWh

1) For existing and new plants using palm or soy bean oil for power production, the NawaRo bonus is only granted in addition for power, if evidence is provided that such plants generate power from sustainably grown biomass in the sense of the regulation according to EEG § 64, clause 2, no.1. 2) During the period from the 1st of January 2009 to the effective date of the sustainability regulations but in any case to the 31st of December 2009 by the latest, this regulation does not apply for plants that have been commissioned or ordered prior to the 5th of December 2007.

NawaRo bonus for the power production from gaseous biomass

“NawaRo bonus” amount – gaseous biomass (excluding biogas)



6 Cents/kWh


500 kWel

6 Cents/kWh


5 MWel

4 Cents/kWh

26

NawaRo bonus for power production from biogas

The NawaRo bonus for power generated with biogas plants sub-

ject to a permission according to the Federal Immission Control

Act that commissioned after the 31st of December 2008 is only

granted if the fermentation residuals storage is equipped with a

gas-tight cover and additional gas consumer installations (e.g.

gas flare) are used for hazardous incidents or in case of an over-

production.

“NawaRo bonus” amount – biogas



7 Cents/kWh


500 kWel

7 Cents/kWh


5 MWel

4 Cents/kWh

27

Increase of the NawaRo bonus, if a minimum slurry share (according to the regulation (EG) no. 1774/2002 of the European Parliament as of October 3rd 2002 incl. the hygiene regulations for animal by-products not intended for human consumption (ABI. EG Nr. L 273 S. 1), as amend-ed by the regulation (EG) no. 2007/2006 of the European Commission as of December 22nd 2006 (ABI. EU Nr. L 379 S.98) is used for power generation.

Annex 2, item VI (to § 27, clause 4, no. 2b) EEG

“The bonus … is increased for power from biogas plants … , if the

slurry share … amounts to a least 30 mass percent at any time.”

The minimum slurry share must be evidenced by an environment-

al expert opinion.

Slurry bonus amount 1)

Performance share as from 2009


4 Cents/kWh

> 150 kWel

up to and including

500 kWel

1 Cent/kWh

1) The slurry bonus cannot be claimed for power from plants, in which gas (biomethane) taken from the gas network is used for power generation.

Increase of the NawaRo-Bonus, if a minimum share of landscaping material is used for power generation.

Annex 2 item VI (to § 27, clause 4, no. 2c) EEG

“The bonus … is increased for power from biogas plants …, if the

power is mainly generated with plants or plant elements from land-

scaping activities.”

The landscaping material share must be evidenced by an environ-

mental expert opinion.

28

Landscaping bonus amount



2 Cents/kWh

5. Bonus for cogeneration power production – “KWK-bonus”

Annex 3, item I (to § 27, clause 4, no. 3) EEG

“The KWK bonus can be claimed … up to and including a plant

output of 20 megawatt, provided that … the claim refers to electri-

cal power … as defined by the Cogeneration Act …”

“KWK” power is the calculatory result of the useful heat and CHP

coefficient of the cogeneration plant (CHP). In case of plants that

are not equipped with heat removal systems, the complete net

power generation consists of cogeneration power (Cogeneration

Act, § 3, clause 4).

The reasonable use of the heat generated from the power pro-

duction must be evidenced.

29

Reasonable heat utilisation according to the use option specified in the KWK positive list

KWK positive list according to EEG, annex 3, item III

ó Heating, hot water supply or cooling of buildings according

to § 1, clause 1, no. 1 of the German Energy Saving Regu-

lation up to a heat input of 200 kWh per square meter of

useful space per year,

ó Heat supply into a network with a minimum length of 400 m

and a heat distribution and transfer loss not exceeding 25 % of

the heat consumer’s useful heat demand,

ó Usage as process heat for industrial processes according to

the 4th Regulation on the Implementation of the Federal Im-

mission Control Act as of March 14th 1997 (BGBl. I p. 504),

most recently amended by article 3 of the Act as of October

23rd 2007 (BGBl. I p. 2470), and the production of wood

pellets for combustion purposes,

ó Heating of operating buildings for poultry farming, if the re-

placement of fossil energy resources is evidence and the heat

supply leads to additional costs of at least 100 Euro per kW of

heat output,

ó Heating of animal stables with the following upper limits:

• Poultryfattening: 0.65kWhperanimal,

• Sowhusbandry:150.0kWhpersowandyear,aswellas

7.5 kWh per piglet,

• Pigletbreeding: 4.2 kWhperpiglet,

• Pigfattening: 4.3 kWhperporker,

30

ó Heating of under-glass installations for the cultivation and

reproduction of plants, if the replacement of fossil energy re-

sources is evidence and the heat supply leads to additional costs

of at least 100 Euro per kW of heat output,

ó Usage as process heat for treating fermentation residuals for

fertiliser production.

The heat usage is equally reasonable, if the replacement of

fossil energy resources is evidenced and the heat supply leads

to evidenced additional costs of at least 100 Euro per kW of

heat output.

“KWK bonus” amount


Power from plants up to and including

20 MWel that have produced power in

cogeneration plants for the first time after

December 31st 2008 (evidence of reasonable

heat usage)

3 Cents/kWh

Power from other existing plants with an

output of up to and including 500 kWel,

produced in cogeneration plants according

to the EEG 2009 requirements

3 Cents/kWh

Existing plants up to and including 20 MWel

with a heat usage according to EEG 2004

requirements

2 Cents/kWh

31

KWK bonus calculation

A cogeneration bonus (KWK bonus) is exclusively paid for the

cogeneration power, i.e. the share of the electrical power cor-

responding to the heat share being used outside of bioenergy

plants (see illustration below). The power required to couple out

the measured heat quantity can be calculated from the aggre-

gate’s CHP coefficient and the measured heat quantity.

Source: KTBL Faustzahlen (2007), changed BMELV

KWK bonus calculation example for a bioenergy plant

Produced thermal energy 700,000 kWh

Produced electrical energy 400,000 kWh

CHP coefficient of the cogeneration unit 0.571

Externally used thermal energy 350,000 kWh

CHPe.g.40%

e.g. 15%

Internal consumer

Removal via backup cooling device

Calibrated heat meter

External consumer / Housing space heating 45%

32

According to this calculation, 400,000 kWh of electrical power

are required for a heat output coupling of 350,000 kWh. The

power share, for which the plant operator is entitled to the cor-

responding KWK bonus in addition to the power compensation,

is calculated by multiplying the externally used heat with the co-

generation unit’s CHP coefficient.

Compliance with sustainability criteria

The sustainable production and use of vegetable raw materials

and energy sources is a basic prerequisite for their use.

§ 64, clause 2 EEG

“The Federal Ministry for the Environment, Nature Conservation

and Nuclear Safety is authorised with the agreement of the Federal

Ministry of Food, Agriculture and Consumer Protection, … to re-

gulate … that the compensation claim for power generated from

biomass only exists if evidence is provided that … certain requi-

rements with regards to a sustainable cultivation of agricultural

and forestry lands and the protection of natural habitats have been

met during the cultivation of the used biomass …”

A large variety of approaches for sustainable production methods

exists for the European agriculture and forestry. Testing and de-

veloping these approaches in research projects is among the key

promotion objectives of the Federal Ministry of Food, Agriculture

and Consumer Protection (BMELV).

Cogeneration power = 400,000 kWh x 350,000 kWh = 200,000 kWh 700,000 kWh

33

The pursued strategies include a.o.:

ó Increase of the species variety in energy plant cultivation,

ó Breeding new varieties,

ó New cultivation methods with reduced pesticide and fertiliser

usage and year-round vegetated fields,

ó Use of highly efficient conversion processes,

ó Cascaded use models with a material and subsequently

energetic use of renewable resources, and

ó Residuals recycling as fertiliser.

The agricultural markets have been globalised for a long time.

Therefore, the need for bioenergy and renewable raw materials is

increasingly satisfied on global markets, without considering sus-

tainability issues. The tropes incur other problems than Europe,

due to rainforest spaces being cleared for the cultivation of food,

forage and energy plants, like oil palms and soy beans, workers

are exploited and native habitants are banished.

A pilot project for implementing a certification concept funded by

the BMELV is intended to find a remedy. The objective is, in a first

step, to only approve biomass with a sustainability certification for

the production of biomass fuels. Subsequently, the certificates must

also be applied to all usage paths for agricultural raw materials

in order to void shifting effects. The certification project, which

is at the onset of a two-years test phase, therefore is equally suit-

ed as an instrument for testing the sustainability requirements of

various draft laws on national and EU level.

For more information on the certification of sustainability

criteria, visit the website www.iscc-project.org.

34

EEG Clearing Body (EEG-Clearingstelle)

The EEG-Clearingstelle has started its work in October 2007. Its

statutory task is to clear disputes and application issues with

regards to the EEG.

The EEG clearing house interferes in case of disputes related to

the EEG in order to find an acceptable solution for two or more

parties (settlement procedure) and examines concrete cases

without any legal commitment as a neutral mediator upon the

parties’ request (opinion procedure) or provides recommend-

ations on the interpretation and application of the EEG (recom-

mendation procedure).

For more information on the Clearingstelle EEG and its work,

please contact:

Clearingstelle-EEG

Kontorhaus Hefter

Charlottenstrasse 65

10117 Berlin

Germany

Phone: +49(0)30 – 2061416-0

Fax: +49(0)30 – 2061416-79

Email: [email protected]

Web: www.clearingstelle-eeg.de

35

Act on Granting Priority to Renewable Energies in the Heat Sector (EEWärmeG)

EEWärmeG – an instrument for realising energy-political targets in the heat sector

The EEWärmeG serves as an instrument for promoting renewable

energies in the heat sector. The objective of this act is to enable a

sustainable energy supply development and to develop heat ge-

neration technologies. The share of renewable energies in the

heat supply in Germany amounted to 7.7 percent (108,7 TWh) in

2008 – more than 93 percent of this heat were generated from

biomass.

Source: BMU based on AGEE-Stat as of April 2009

58.4 % biogenic solid fuel (house hold)

15.4 % biogenic solid fuel (industry)

5.8 % biogenic solid fuel (cogeneration and heat plants)

4.7 % biogenic liquid fuels 4.9 % biogenic gaseous fuels 4.6 % biogenic waste share 3.8 % solar heat

2.2 % near-surface geothermal energy

0.2 % deep geothermal energy

36

The heat usage from renewable energies is planned to be in-

creased with the commencement of the EEWärmeG on the 1st of

January 2009.

§ 1, clause 2 EEWärmeG

“… Purpose … of this act is to …, increase the share of renewable

energies in the final energy consumption for heat (ambient, cooling

and process heat, as well as hot water) to 14 percent by 2020.”

Introduction of a use obligation for renewable energies

This use obligation applies to all new buildings with a floor space

exceeding 50 m2. It does not apply for projects, for which a build-

ing application or building notices has been filed prior to the 1st

of January 2009.

§ 3, clause 1, EEWärmeG

“Owners of new buildings must cover the heating energy demand

with a proportionate use of renewable energies.”

The use obligation does not apply to:

ó Operational buildings that are mainly used for animal

breeding and husbandry,

ó Operational buildings that must be held open permanently and

to a large extent due to their purpose,

ó Underground structures,

ó Under-glass installations and growing rooms for the breeding,

reproduction and sale of plants,

ó Air-inflated structures and tents,

37

ó Buildings that are intended to be erected and dismantled re-

peatedly and temporary buildings with a planned service life

of up to two years,

ó Buildings that are intended for church service and other

religious purposes,

ó Residential buildings with an annual usage period of less than

four months,

ó Other operational buildings that need to be cooled to an

indoor temperature not exceeding 12°C or heated less than

four months and cooled less than two months per year, and

ó Buildings that are part or secondary facilities of a plant

covered by the application scope of the Greenhouse Gas

Emission Trading Act … as amended from time to time.

Contribution of the various renewable energy sources to the compliance with the usage obligation

Use of solar radiation energy:

The heating energy demand must be covered by at least 15 %

from solar radiation energy. The thermophotovoltaic devices

must be certified with the “Solar Keymark” quality mark.

ó Residential buildings with a maximum of 2 apartments

require thermophotovoltaic devices with an aperture of at

least 0.04 m2 per m2 floor space.

ó Residential buildings with more than 2 apartments require

thermophotovoltaic devices with an aperture of at least

0.03 m2 per m2 floor space.

Use of gaseous biomass:


from gaseous biomass (from cogeneration).

38

Use of solid biomass (fulfilment of the efficiency requirements):


from solid biomass.

Use of liquid biomass (fulfilment of the sustainability criteria):


from liquid biomass. The implemented boilers must correspond

to the best available technology.

Use of geothermal energy/geothermal heat (fulfilment of

efficiency requirements): The heating energy demand must be

covered by 50 % through plants using geothermal energy and

geothermal heat.

Alternative measures for fulfilling the use obligation Building owners can also fulfil the legal use obligation by not

using renewable energies but rather taking alternative measures.

ó Coverage of at least 50 % of the heating energy demand

through plants using waste heat (especially from heat pumps

or ambient air equipment with heat recovery),

ó Coverage of at least 50 % of the heating energy demand

from highly efficient cogeneration plants according to the EU

guideline 2004/8/EG,

ó Energy-saving measures based on the standards of the Energy

Saving Regulation,

ó Coverage of the heating energy demand through a local or

block heating supply network (heat mainly coming from

renewable energies or by at least 50 % from plants using

waste heat or by at least 50 % from cogeneration units or by

at least 50 % from a combination of renewable energies, waste

heat and cogeneration heat).

Renewable energies and alternative measures can also be

combined for compliance with the use obligation.

39

Exceptions from the use obligation

The obligation to use renewable energies to cover the heating

energy demand can also be omitted.

§ 9 EEWärmeG

“The obligation … is omitted, if … the fulfilment of the latter and

the performance of alternative measures … contradict to public

legal obligations or …, as the case may be, are technically un-

feasible or … if the competent authority exempts the obligor upon

request …”

The authorities’ competence is administered by the Federal States.

Promotion of renewable energies for heat generation

The budget of the market incentive programme is increased for this purpose.

§ 13 EEWärmeG

“The Federal Government … supports the use of renewable energies

for heat generation with up to Euro 500 million per year from

2009 to 2012.”

ó Investment subventions via the Bundesamt für Wirtschaft und

Ausfuhrkontrolle (BAFA) (Federal Office for Business and Ex-

port Control), Frankfurter Strasse 29-35, 65760 Eschborn,

ww.bafa.de

ó Repayment subventions via the Kreditanstalt für Wieder-

aufbau (KfW) (Reconstruction Loan Corporation), applications

can be filed with the respective main bank,

www.kfw-foerderbank.de

40

Eligible measures

Construction and extension of:

ó Solar thermal plants,

ó Plants for the use of biomass (efficient and low-emission

pellet ovens and pellet central heatings, wood-chip heatings

and split-log gasification boilers),

ó Plants for using geothermal energy and heat, as well as

ó Local heat networks, heat reservoirs and eventually transfer

stations for heat consumers.

Various bonus payments are equally granted in addition to the

basic support:

ó Regenerative combination bonus,

ó Circulating pump bonus and

ó Depending on the plant type: 2 different efficiency bonus levels.

Furthermore, an innovation subvention is granted for the equip-

ment and/or retrofitting with fine particle filter and waste-gas

heat exchangers (condensing boiler technology).

41

Economic comparison of wood and fuel oil heating

Calculation example for a period property single-family home

having an annual fuel demand of 28 MWh for heating and hot

water subsequently to energetic retrofitting works.

Heating

oil

Pellets Split-log

Energy content (kWh/l

and/or kWh/kg)

10 5 4.15

Fuel quantity/year 2,800 l 5.6 t 15 st.

Fuel price 73 Cents/l 190 €/t 60 €/st.

Specific fuel costs (Cent/kWh) 7.30 3.80 3.15

Annual fuel costs 2,044 € 1,064 € 900 €

Operation-specific costs/year

(a.o. maintenance/repair, chim-

ney sweep, auxiliary power)

415 € 656 € 445 €

Equipment investments, incl.

boiler, control, process water

reservoir (also buffer stor-

age in case of split-log), fuel

storage and discharge and

installation

8,200 € 16,900 € 12,200 €

Subvention* 0 € 2,700 € 1,325 €

Annual costs with subven-

tion**

666 € 1,010 € 747 €

Total annual costs, incl. main-

tenance, repair, etc. – with

subvention

3,125 € 2,730 € 2,092 €

Specific costs (Cent/kWh,

at 90% boiler efficiency)

0.13 0.11 0.09

Source: FNRst. = stere* Subvention: BAFA, basic split-log subvention €1125, Pellet boiler €2000, buffer storage €500, circulating pump €200** Interest: effective interest rate from KfW programmes as of 02/2008 (pellet and split-log gasification boiler 3.24 %, oil heating 5.15 %)

42

Other programmes for promoting renewable energies

The BMELV publication “Förderung der Energieeinsparung

und Umstellung von Energieträgern“ (promotion of energy

resources savings and transitions) (Spring 2009) includes

more information

ó Guideline for the promotion of demonstration projects in

the energetic use of renewable raw materials for promot-

ing plants and procedures that represent the state of the art

in science and technology or an innovative procedure combi-

nation in the selected application area (www.fnr.de),

ó Promotion programme for renewable raw materials for

promoting projects that address the energetic and material

use of renewable raw materials (vegetable and animal raw

materials) from agriculture and forestry (www.fnr.de),

ó Guideline for the promotion of research and development

projects for promoting the introduction of new energy-saving

and sustainable energy production technologies in practical

agricultural applications,

ó Community task “Improvement of agricultural structures

and costal protection (GAK)”: In the context of the promot-

ion principles for the integrated rural development, promot-

ion of the rural character of aligned infrastructural activities,

in particular to tap agricultural and touristic development

potentials in the framework of an income diversification of

agricultural and forestry operations and for the decentralised

supply of renewable energies (local heat or biogas pipelines)

(www.bmelv.de),

43

ó GAK: In the context of the principles for the promotion of

individual agricultural operations (part A: AFP promotion of

thermal and cold insulation activities; part B: Promotion of

investments for diversification, cogeneration units, biomass

and biogas plants; part D: Promotion of the energy consult-

ancy for individual operations intended to train agriculturists

in the use of energy resources) (www.bmelv.de),

44

ó Landwirtschaftliche Rentenbank: Promotion programmes of

the Landwirtschaftliche Rentenbank focussed in agriculture,

agricultural and nutrition economics, new energies and rural

development (promotion of measures a.o. for a sustainable de-

ployment and storage of fertilisers and pesticides and for im-

proving the energy efficiency in stables and gardening, as

well as for the installation of biogas plants and other invest-

ments for the recycling of renewable agricultural materials)

(www.rentenbank.de).

45

EEG 2009

Basic compensation



el


el

> 5 MWel up to and including 20 MW

el

Emission minimisation bonus


3) 4)

Bonus for the power generation with innovative technologies (technology bonus)

Innovative technologies5)

Biogas upgrading and supply (new plants: up to a maximum gas

treatment plant capacity of 700 Nm3)

Up to a maximum upgrading plant capacity of 350 Nm3 treated

crude gas per hour

Up to a maximum upgrading plant capacity of 700 Nm3 treated

crude gas per hour

Bonus for the power production from renewable raw materials (NawaRo bonus)

NawaRo bonus for solid biomass



el


el

NawaRo bonus for liquid biomass



el


el

NawaRo bonus for gaseous biomass (excluding biogas)



el


el

Compensation table – complete overview

46

New plants Existing plants

11.67 Cents/kWh1) 2) 11.67 Cents/kWh

9.18 Cents/kWh1) 2) According to year of commissioning



1.00 Cent/kWh 1.00 Cent/kWh

2.00 Cents/kWh 2.00 Cents/kWh

2.00 Cents/kWh

2.00 Cents/kWh

1.00 Cent/kWh



4.00 Cents/kWh6) 4.00 Cents/kWh6)


6.00 Cents/kWh7) 6.00 Cents/kWh7) 8)

0.00 Cent/kWh 6.00 Cents/kWh7) 8)

0.00 Cent/kWh 4.00 Cents/kWh7) 8)




47

EEG 2009

NawaRo bonus for biogas



el


el

Increase of the NawaRo bonus by a slurry bonus 10) 4)



el

Increase of the NawaRo bonus by a landscaping bonus 11)



el

Bonus for the power production from cogeneration

(KWK bonus)

Power from plants up to and including 20 MWel, starting power

production from cogeneration after the 31st of December 2008 12)

Power from other existing plants up to and including 500 kWel,

produced from cogeneration 12)

Power from other existing plants up to and including 20 MWel,

produced from cogeneration (heat use according to EEG 2004)

1) The basic compensation can only be claimed for power from plants using biogas tapped from the gas network, if the power has been produced in a cogeneration according to annex 3 of the EEG 2009.

2) The basic compensation can only be claimed for plants > 5 MWel, if the power

is produced in cogeneration according to annex 3 of the EEG 2009.

3) The basic compensation for power from biogas plants is increased, if the formaldehyde limit value corresponding to the emission minimisation instruc-tion “Technical Instructions on Air Quality” (TA Luft)(40 mg/m3 exhaust gas) is observed and certified by the competent authority.

4) No compensation can be claimed for power from plants using biogas tapped from the gas network.

5) The technology bonus can be claimed for power generated in plants with an output of up to and including 5 MW

el.

6) Granted for power from the combustion of wood from short rotation forestry and landscaping material.

48

New plants Existing plants

7.00 Cents/kWh 9) 7.00 Cents/kWh




1.00 Cent/kWh 1.00 Cent/kWh




– 3.00 Cents/kWh

– 2.00 Cents/kWh

7) The bonus for power from palm and soy bean oils is only granted upon evidence of the sustainability criteria according to EEG § 64, clause 2, no. 1.

8) From the 1st of January 2009 to the commencement of the sustainability regu-lations but in any case to the 31st of December 2009 by the latest, this does not apply to plants that have been commissioned or ordered prior to the 5th of December 2007.

9) The compensation can only be claimed for power from plants with a ferment-ation residuals storage equipped with a gas-tight cover and additional gas consumer installations used for hazardous incidents or in case of an overpro-duction.

10) Provided that 30 mass percent of the fermentation substrate volume accord-ing to Regulation (EG) no. 1774/2002 consist of slurry at any time.

11) The power must be produced mainly from plants or plant elements incurred during landscaping activities.

12) The heat use must be reasonable in the sense of the EEG 2009.

49

Editor

Federal Ministry of Food, Agriculture and Consumer Protection (BMELV)

11055 Berlin

Contact

Referat N1 (Energetische Nutzung nachwachsender Rohstoffe und Energieangelegenheiten)Wilhelmstrasse 5410117 BerlinGermanyPhone: +49(0)30-18-529-0

Version

April 2009

Printed by

BMELV

Layout

design_idee, Erfurt

Photos

FNR, www.oekolandbau.de/BLE/Thomas Stephan, Dominik Menzler, Jörg Böthling/agenda, Jan Potente

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The Renewable Energy Sources and the Renewable Energies

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